OAR 123-049-0025: Funding Award Information

(1) The Authority may award financing in a manner that maximizes the use of available resources and maintains the desired credit standards of the Fund. The Authority shall determine the amount, type, interest rate and terms of any financing awarded. It may offer an alternative mix or lower amount of assistance than requested. The amount of the award may be the minimum amount that the Authority determines is necessary to enable the project to proceed, and the Authority may investigate and recommend other sources of funds for all or part of a proposed project. Projects that the Authority determines are not financially feasible will not be funded. (2) The term of a loan is limited to the usable life of the contracted project, or 30 years from the year of project completion, whichever is less. (3) The term of a loan for a planning or design only project shall not exceed 10 years. (4) For municipal entities a loan must be secured by a full faith and credit obligation that is payable from any taxes which the municipality may levy within the limitations of Article XI of the Oregon Constitution and all legally available revenues and other funds of the municipality. A pledge of specific revenues of the municipality may be required by the Authority to be pledged in addition to the foregoing. (5) For privately owned water system a loan must be secured at minimum by a pledge of a specifically identified revenue source such as the pledge of accounts receivable and proceeds therefrom. Additional loan security may be required based on the Authority’s assessment of borrower risk. (6) The maximum amount for a loan for a project will be determined by the Authority on the basis of financial analysis of the borrower’s capacity for repaying the debt, the availability of moneys in the fund and prudent fund management. The Authority may limit the maximum amount an entity can borrow based on fund availability, program demand and Oregon Health Authority prioritization of projects.